Brazilian Surplus Tumbles Due to Strong Import Growth

Brazzil Magazine covers

Brazilian exports totaled US$ 2.325 billion last week, 3.47% more than in the previous week. Imports, however, rose 6.56%, to US$ 1.933 billion. Consequently, the surplus for the week of May 22-26 amounted to only US$ 392 million, the weakest result this year for a full 5-day business week.

The general figures for the trade balance during the fourth week of May were announced today, May 29, by the Brazilian Ministry of Development, Industry, and Foreign Trade.

They indicate that the weekly surplus was down 9.47% from the previous week, when the surplus was already nearly 60% lower than in the second week of the month.

The decline is the result of strong import growth in the second half of the month, at a much faster pace than that of exports. As a result, the cumulative surplus in May comes to US$ 2.776 billion, with three business days left to complete the month.

For the year so far, the surplus is US$ 15.214 billion, the result of exports worth US$ 48.174 billion (up 12.85% in comparison with 2005) and imports worth US$ 32.960 billion (up 20.92%).

This is the first time that this year’s surplus is lower than last year’s for the same period of time. Since last year’s surplus through May 26 was US$ 15.429 billion, this year’s decline amounts to 1.4%.

Inflation

The weekly Brazil’s Central Bank survey of trends in the chief economic indicators continues to predict that the Broad Consumer Price Index (IPCA) will end the year at 4.32%, below the 4.50% target set by the government.

The results of the survey were announced today, May 29, and indicate a lowering of expectations compared with last week’s forecasts for inflation in May and June.

The latest predictions are for a 0.20% increase in the IPCA in May, as against 0.23% in last week’s survey, and a 0.24% increase in June, as against 0.25%. The rate of inflation projected for the next 12 months remained unchanged at 4.20%.

Agência Brasil

Tags:

You May Also Like

Brazzil Magazine covers

Brazil’s Surplus Reaches US$ 6.9 Billion, 8% More Than Last Year

Brazilian exports reached US$ 2.44 billion last week, while imports totaled US$ 1.82 billion, ...

Brazzil Magazine covers

All-Time High for Brazil Stocks Amid Lower Inflation Hopes

Latin American markets were mixed, with Brazilian stocks hitting another record high on upbeat ...

Brazzil Magazine covers

Brazil Offers Appealing Loans to Build 3,000 Kms of Power Lines

The president of Brazil’s National Economic and Social Development Bank (BNDES), Guido Mantega, announced, ...

Brazzil Magazine covers

Brazilian Stocks Drop 6.6%. Losses in 2008 Jump to 16%

Brazil is having an extreme case of bearishness. São Paulo stock exchange's main index, ...

Brazzil Magazine covers

A Brazilian Theologian Once Silenced by Cardinal Ratzinger Talks About the Old and the New Pope

An interview with Leonardo Boff – The Church is without a spiritual leader who ...

Brazzil Magazine covers

For Brazil WTO Talks Postponement Has All to Do with US Greed

World Trade Organization (WTO) chief Pascal Lamy has abandoned attempts to restart the world ...